The World Bank released its latest regional economic update on 8 April 2026, projecting that economic growth in Latin America and the Caribbean (LAC) will slow to 2.1% this year. This is a decline from the 2.4% growth recorded in 2025, as the region grapples with persistent global headwinds, high borrowing costs, and stagnant investment.
The report, titled “Slow Growth in Latin America and the Caribbean amid Global Uncertainty and Weak Investment,” highlights a challenging macroeconomic landscape. William Maloney, World Bank Chief Economist for LAC, emphasized that the region is missing out on major opportunities like nearshoring due to deep-seated productivity gaps and the rise of new trade barriers.
While the broader LAC region struggles, the Dominican Republic remains a regional outlier, consistently outperforming its neighbors. In its most recent update on 31 March 2026, the Central Bank of the Dominican Republic (BCRD) revised its 2026 growth forecast to a range of 3.5% to 4.0%. This represents a significant acceleration from the 2.1% GDP growth recorded in 2025. According to the BCRD’s March 2026 Monetary Policy Report, the local economy is expected to be driven by a recovery in private investment and a resilient tourism sector, despite a “complex and turbulent” international context dominated by Middle Eastern geopolitical tensions.
The Dominican Republic is taking actions to capitalize on its strategic geographic proximity to the US market and new nearshoring opportunities.
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World Bank
9 April 2026